LOVELY Company manufactures a single product. Assume the following data for 2020:

Variable costs per unit:

Selling and Administrative P 4

Production P 8

Fixed costs in total:

Production P 240,000

Selling and Administrative P 58,000

During 2020, 25,000 units were produced and 20,000 units were sold.

5. Under direct costing, the cost of one unit of product would be

A. P 4

B. P 12

C. P 11.60

D. P 15.60

6. The inventory carrying value of finished goods under direct costing would be:

A. The same as under absorption costing.

B. P 48,000 higher than under absorption costing.

C. P 45,000 less than under absorption costing.

D. P 48,000 less than under absorption costing.

7. Under absorption costing, what would be the cost of goods sold for 2020?

A. P 432,000

B. P 298,000

C. P 352,000

D. P 490,000